Dividends in arrears

Use the following information for Portland Corporation to calcualte Equity data.

Portland Corporation

Market price $85

Par Value Shares out Total $$

Preferred stock $? 1,000 5% Cumulative $50,000

Common stock $? 4,000 $80,000

Retained earnings $150,000

$280,000

1 Current Common Market Price:

2 What is the par value for the preferred stock?

What is the par value for the common stock?

3 What is the book value of Preferred and Common if 2 years of dividends are in arrears?

a. Dividends in arrears

par value

x 5000000% dividend %

div per share ann div per share

x 1000 # shares

1 yr div in arrears

x years in arrears

Dividend in arrears

b. Preferred stock Book Value per share

Preferred Stock Equity $

Dividend in arrears $

Total Preferred Equity $

Total Preferred Stock Equity $ Preferred Book value per share

# shares outstanding

c. Common stock book value per share

Common Equity $

Retained earnings - Dividend in arrears $

Total Common Equity $

Total Common Equity $ CommonBook value per share

# shares outstanding